Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

April 15, 2024
Ichigo Inc. (Tokyo Stock Exchange Prime, 2337)
Representative: Scott Callon, Chairman
Inquiries: Takanori Sakamatsu, Executive Managing Director
Telephone: +81-3-4485-5221 www.ichigo.gr.jp/en

Dividend Increase
Ichigo’s decided today to increase its dividend to JPY 9. The dividend is payable to allshareholders of record as of February 29, 2024, and is subject to shareholder approval at
Ichigo’s shareholder meeting on May 26, 2024.
1. Dividend Increase Details

Dividend
Record Date
Dividend per
ShareTotal
Dividends
Payment Date
SourceRevised Dividend

Dividend Forecast(April 19, 2023)

FY23/2February 29, 2024

February 29, 2024

February 28, 2023

JPY 9

JPY 8

JPY 8

JPY 3,963 million–

JPY 3,627 million

May 27, 2024
Retained Earnings––May 29, 2023
Retained Earnings

2. Dividend Increase Rationale
Ichigo’s FY24/2 Net Income and Cash Net Income were JPY 12,108 million and JPY
17,878 million, +21.1% and +15.3% versus the forecast announced on April 19, 2023.
During FY24/2 Ichigo achieved record stock earnings and growth across all businesssegments, with hotel earnings (asset management fees, rental income, and hotel operatorrevenue) contributing to stock earnings growth that significantly exceeded forecast on
strong hotel demand. Driving flow earnings growth, Ichigo sold five hotels, including
two Ichigo brand hotels, to Ichigo Hotel (TSE 3463) as part of its sponsor support for
Ichigo Hotel, and Ichigo Owners delivered earnings growth and sales channel expansion
via launching multiple Ichigo Residence Tokens.
Ichigo focuses on maximizing long-term cash flows for shareholders. These cash flows
fund growth investments and buybacks that drive Ichigo’s EPS growth. With robust
ongoing cash flows, Ichigo has also decided to increase its dividend.
On the back of its strong earnings stability, in FY17/2 Ichigo implemented a progressive
dividend policy, under which Ichigo’s dividend is maintained or raised every year, but
not cut. Ichigo seeks to support long-term growth in shareholder value via a shareholder
return policy that focuses on dividend stability, transparency, and growth.

1As announced in today’s release “Updated Ichigo 2030 KPIs,” Ichigo has decided toincrease its ongoing Dividend on Equity (DOE) payout ratio from 3% to 4%. Based on
this shareholder return policy, Ichigo is increasing its dividend to JPY 10 in FY25/2.
Please refer to today’s release “FY24/2 Earnings” for details on the FY25/2 earnings
forecasts.
Although dividend payout ratios are frequently used in shareholder return policies, theproblem with dividend payout ratios is that they are highly sensitive to short-term
earnings volatility and thus generate uncertainty for shareholders with respect to theactual dividend payout. Ichigo’s adoption of a progressive dividend policy underscores
its commitment to long-term value growth for its shareholders.
Today’s release “Updated Ichigo 2030 KPIs”
www.ichigo.gr.jp/en/ir/news/p_news_file/file/Ichigo_20240415_Updated_Ichigo2030_
KPIs_ENG.pdf
Today’s release “FY24/2 Earnings”
www.ichigo.gr.jp/en/ir/news/p_news_file/file/Ichigo_20240415_Q4_Feb2024_Earnings_ENG.pdf
3. Rationale for Seeking Shareholder Approval for Ichigo’s Dividends
All Directors on Ichigo’s Board of Directors are deeply aware of their fiduciary
responsibilities to shareholders, and work collaboratively with Ichigo stakeholders todrive sustained value creation. To support best-in-class execution of the board’s
fiduciary responsibilities on behalf of shareholders, Ichigo was an early adopter ofstrong corporate governance, implementing in 2006 a Company with Committees(Nominating, Audit, Compensation) governance structure, with Ichigo’s Board ofDirectors comprised by a majority of Independent Directors.
Pursuant to Article 459, Clause 1 of Japan’s Companies Act, given the strong
protections this governance provides for shareholders, the Company with Committee
structure allows for dividends to be decided by the board. Per this legal framework,
Ichigo’s dividends have been decided at the board level since 2006.
Ichigo is committed to strengthening its shareholder-oriented governance by seeking
shareholder input on key corporate decisions. Ichigo has thus decided to seek approvalfor dividends at Ichigo shareholder meetings, starting with the FY24/2 dividend at thisyear’s May AGM.

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